Victims of Drunk Driving and Colorado’s Dram Shop Statute: What it Means

Dram Shop Laws

Currently, 43 states have adopted what is called “dram shop laws.” (PDF) Mothers Against Drunk Drivers (MADD) defines these and other social host laws as “laws allowing liability of establishments arising out of the sale of alcohol to obviously intoxicated persons or minors who subsequently cause death or injury to third parties as a result of alcohol-related crashes.”

What is the Dram Shop Law in Colorado?

According to Colorado law, individuals, or businesses with a license to sell alcohol can be subject to a lawsuit if they sold alcohol to a person and (1) the person was visibly intoxicated or (2) the person was under the legal drinking age.

In Colorado, if a business licensed to sell alcohol provides alcohol to a minor under the age of 21 or to someone visibly intoxicated, then they are liable for the damages caused as a result of their patron’s actions. This law is why you may encounter a bartender who is determined to cut you off. That bartender is doing their job and trying to minimize the risk of a drunk driving accident. However, not all staff or business owners will be attentive to the intoxication level of their patrons. After all, the more alcohol they sell, the more money they make. You should remember that this kind of negligent behavior leaves the shop open to liability when it comes to filing a claim.

What does “Dram Shop” mean?

Dram shop laws receive their name from 18th century England when establishments sold gin by the spoonful called a “dram.” Thus, Dram Shop law is named after places that have served alcohol.

Damages and Time Limits for Filing Colorado Dram Shop Cases

Damages in a Colorado Dram Shop case are typically available for the quantifiable losses caused by the intoxicated person’s behavior. Damages generally include compensation for things like medical bills, lost wages, and pain and suffering. In Colorado, damages in dram shop and social host liability cases are capped or limited to a total of $150,000.

Colorado also sets a specific time limit on filing dram shop lawsuits. This “statute of limitations” requires that a potential plaintiff get their lawsuit filed within one year of the date of injury. However, it’s best to get in contact with an experienced attorney as soon as possible after being injured to make sure your rights are protected.

So, when might Colorado’s dram shop law apply?

Suppose that Bob is drinking at Bill’s Nightclub. He’s slurring his words, has trouble holding his glass, being loud to other patrons, maybe even making rude comments, and even falls off his barstool. Nevertheless, Bill, the bartender, keeps serving Bob drinks. Eventually, Bob stumbles toward the door, but as he’s leaving, he runs into Sue. Sue is knocked to the ground when Bob collides with her, and she falls suffering injuries. Sue can sue Bob for her injuries. But she can also file a dram shop claim against Bill’s Nightclub for serving Bob alcohol while he was visibly intoxicated. Also, let’s say, Bob gets behind the wheel and causes a car accident when he hits Sally’s vehicle. Sally can sue Bob and his car insurance for car accident liability and sue Bill’s Nightclub for Dram Shop liability.